Annual
Report 2022
Custodian of the Two Holy Mosques
KING SALMAN BIN
ABDULAZIZ AL SAUD
2
His Royal
Highness
Prince
MOHAMMED
BIN SALMAN
BIN
Crown
ABDULAZIZ AL SAUD
Prince
Prime
Minister
Chairman of the Council of Economic and
Development Affairs
Chairman of the Public Investment Fund
3
Annual
Report 2022
TABLE OF
CONTENT
About
0
1
0
Governor’s Statement PIF History
A Year in Review 2022
PIF Vision Realization Program Showcasing the Fund
Portfolio Review
2022 Performance Review Saudi Investment Pools
International Investment Pools Treasury Pool
ESG Review
Investing in People, Technology & Relationships
2
0
3
4
PIF
At a
Glance
0
8
Governance Review
Board of Directors and Board
Committee Members Governance
at Board Level
Managing PIF’s
Investments
Executive
Management
Organizational
Structure
Governance and
1
2
1
8
2
2
2
6
2
8
3
4
3
6
10
4
2
2
10
6
4
6
11
7
0
6
12
7
2
8
12
8
4 5
2
12
Strategic
Review
Governance
Review
Annual
Report 2022
6
7
About
PIF
At a
Glance
Annual
Report 2022
AT A
GLANCE
Lond
on
Riya
dh
New
York
Hong
Kong
PIF
OFFICE
S
3
SA
R
B
N
1
1 PIF LEVEL AUM INCLUDES RECEIVABLES FROM OTHER
PARTIES WORTH 5 BN SAR.
2 SINCE VRP INCEPTION P.A.
3 DIRECT AND INDIRECT JOBS.
8
9
Governor’s
Statement
Strategic
Review
2022 was a year when the
robust
financial
foundations
established by PIF enabled
tangible and rapid progress. As
the economy continued to
recover from the disruptions of
recent years, PIF has been
proactive
in
driving
transformational
change
throughout the Kingdom. Our
enduring financial strength has
enabled us to identify and take
advantage of key investment
opportunities in 1 a way that
delivers a sustainable growth for
Saudi Arabia.
GOVERNOR’S
STATEMENT
Bringing
experience &
expertise
together
Total AUM
increased to
SAR 2,234
BN
Under the wise leadership of
the Custodian of the Two Holy
in
2022King Salman bin
Mosques,
Abdulaziz Al Saud, and our
Chairman, His Royal Highness
Crown Prince Mohammed bin
Salman bin Abdulaziz Al Saud,
PIF has acted as a key financial
engine helping to drive the
Kingdom’s transformation forward.
H.E. Yasir Bin
Othman Al
Rumayyan
Governor of the
Public
Investment
Fund
1
2
Our Chairman and board
members are united by a vision
of the way that PIF can fulfill
our important mandate as an
enabler
of Saudi
Arabia’s
economic development and
diversification. PIF has directed
investment to build new cities,
industries, and technologies
that will shape a sustainable,
more prosperous future for
Annual
Report 2022
25
NEW
COMPANIES
ESTABLISHED
IN 2022
181,000
NEW JOBS
CREATED IN 2022
1- PIF LEVEL AUM INCLUDES RECEIVABLES FROM
OTHER PARTIES WORTH 5 BN SAR.
1
3
Governor’s
Statement
Strategic
Review
Making
A
Change
Foundati
Happen
on for
PIF’s ability to deliver for the
The planning, strategy, and
Growth
Kingdom is based upon strong
partnership development work that
business
management
and
sound financial principles, key
attributes recognized in early
2022 when global credit rating
agency Moody’s assigned PIF
with a first-time issuer rating of A1
and a scorecard rating of Aa2.
Moody’s assessment followed a
similarly positive appraisal by
credit rating agency Fitch, which
recognized the strength of
PIF’s financial position and
governance by assigning a longterm issuer rating of A. This
evaluation highlighted PIF’s low
debt level, net cash-positive
position,
and
very
strong
financial outlook.
These ratings are a testament
to PIF’s strong financial profile,
business and portfolio diversity,
and the strength of our core
team.
PIF’s
access
to
international capital markets will
be enhanced by these ratings
enabling the Fund to target more
investment in the growth sectors
that will support the Kingdom’s
ongoing transformation.
PIF’s global profile and ability to
operate
on the international scale
1
4
are
supported by the ongoing
PIF has undertaken in previous
years has been essential in
providing a stable platform for our
activities in 2022. This approach
enabled PIF to implement the
key strategic programs that will
contribute to achieving the
objectives of Vision 2030.
The Fund continues to invest
locally in the sectors and
industries
Our
flagship
that will
projects
supportcarry
the
transformation
significant
potential
of the
to catalyze
Saudi
Arabian quality
improved
economy.
of life in local
PIF
established 25 and
communities,
new they
companies
have
andadvanced
all
locally deployed
significantly
aroundwithin
SAR
120 BN during the year in our
2022.
strategic
sectors.
At NEOM,
this year HRH the
Crown Prince, Chairman of
NEOM Board of Directors,
unveiled the masterplan and
designs for THE LINE, a
revolutionary
urban
living
experience that will set a new
ROSHN’s ALAROUS
benchmark
for future community
cities with
was also
launchedinfrastructure
in 2022.
its
reduced
Inspired by
footprint.
It Jeddah’s
will use historic
100%
architecture, with
an area of
4
renewable
energy
and
million m2onthat
draws
upon
emphasize
people
and nature
Sauditransportation.
Arabia’s rich culture and
over
heritage it offers a modern,
convenient lifestyle built to the
highest international standards.
At
Qiddiya,
our
immersive
entertainment destination, a SAR
2.8 BN contract was awarded to
create the region’s largest
waterpark - a major new attraction
for the travel and tourism
industries in the region, adding
significant value to a fast-growing
sector.
The Red Sea Development
Company expanded its remit,
becoming “Red Sea Global” to
position the project as a global
tourism hub. This expansion will
include critical new infrastructure,
as well as investments in a
range of construction projects in
tourism and other sectors.
Each of these transformational
giga-projects is united by a scale
of ambition and activity designed
to contribute significantly to the
Kingdom’s strategic objectives by
supporting
new
industries,
sectors,
communities,
and
These
businesses
include
Ceer,
businesses. Combined, they will
Saudi
Arabia’s
firstnew, long-term
ultimately
create
electric
car brand,
the Halalfor the
economic
opportunities
Products
Kingdom.Development
Maintaining its strategic focus on
driving the future, PIF is investing
in a way that is economically and
environmentally
enduring.
Throughout 2022, the Fund
Annual
Report 2022
Company, and the expansion of
King Salman International Airport
along with the launch of the
Aircraft
Leasing
Company
(AviLease).
PIF’s Saudi Equity Holdings
and Saudi Sector Development
pools
have
identified
and
supported
new
growing
businesses while creating new
jobs across the Kingdom.
QIDDIYA
HAS
AWARD
SAR
ED A
CONTRACT
TO CREATE
THEBN
REGION’S
LARGEST
WATERPAR
K
2.
8
1
5
Governor’s
Statement
Strategic Review
Toward a
Sustainable
Tomorrow
Sustainability has always been
central to PIF’s approach. As a
leading global investor, PIF has
a responsibility to allocate
capital in a way that maximizes
impact beyond financial returns.
This stewardship means finding a
balance between the delivery of
economic,
social,
and
environmental gains.
This commitment is not only
about how PIF itself operates, it
is also about the support PIF
provides to the businesses that
In 2022, PIF made an
the Fund invests in, ensuring
ambitious
commitment to
they grow with strong ESG
a
shared sustainable
values at the heart of their plans.
future.
During the 2022 Middle East
Green Initiative, HRH the Crown
Prince
announced
PIF’s
intention to achieve net zero
emissions by 2050. As a result,
PIF became the first MENA
sovereign
PIF’s frameworks,
wealth fundpolicies
and oneand
of
the
partnerships
first globally
are fully
to aligned
make with
this
commitment.
environmental,
social
and
governance principles, enabling
these ambitions to be realized in
the coming years.
1
6
Annual
Report 2022
Shaping The
Future
In addition, in 2022 PIF
launched the Regional Voluntary
Carbon Market Company, a
business that will support firms
around the world in offsetting their
emissions through the trading
of carbon credits.
In 2022, the company facilitated
the successful auction of 1.4 MN
tons of carbon credits at the Future
Investment Initiative in Riyadh, in
the world’s largest- ever carbon
credit sale.
THE REGIONAL
VOLUNTARY
CARBON
MARKET
COMPANY
FACILITATED
THE
SUCCESSFUL
AUCTION OF
1.4 MN
TONS OF
In
a
year
of
significant
achievements, PIF is proud of the
progress it has made in
delivering tangible benefits for
the
Kingdom.
I would
like to thank the
board of directors and the
committees under the
leadership of His Royal
Highness
Prince
Mohammed bin Salman bin
Abdulaziz Al Saud, Crown
Prince, Prime Minister,
Chairman of Council of
Economic
and
Development Affairs, the
executive
management
As we enter 2023, the Public
and
PIF employees and all
Investment Fund is in a strong
itsstakeholders, for their
and
solid position
to achieveour
its
commitment
to support
global
impact
and offer
added
mission
to create
a bright
value
to Saudi Arabia, its people
future.
and all stakeholders.
Yasir O. Al Rumayyan
Governor of the Public
Investment Fund
1
7
Strategic Review
PIF History
Annual
Report 2022
PIF
HISTOR
Y
Supporting Investment
Excellence
PIF plays a central role in diversifying and
developing the Saudi economy. The Fund’s
investment portfolio has supported the
establishment of over 70 companies across 13
strategic sectors.
1
8
1
9
Strategic Review
NEW PIF
LAW
INTRODU
A
new
law
CED
SCOPE
BROADENED
1971
PIF was established
as part of the Ministry
of Finance by virtue
of Royal Decree No.
M/24
dated
25/6/1391H.
was
introduced, granting PIF
broader authority and
power to achieve its
objectives and carry out
its functions and duties.
PIF was granted the
authority to establish
new companies inside
and
outside
the
Kingdom without prior
consent
from
the
Council of Ministers.
2014 201
5
PIF’S JOURNEY
BEGINS
2
0
Annual
Report 2022
PIF History
CEDA
OVERSI
GHT
PIF’s oversight was
transferred from the
Ministry of Finance
to the Council of
Economic
and
Development Affairs
(CEDA).
20
17
2019
20
21
PIF STRATEGY
2021 - 2025
PUBLIC
INVESTMENT
FUND
PROGRAM
ANNOUNCED
The PIF Program 2018-2020
was launched to identify
targets
and
initiatives
through
which
PIF
contributes
to
realizing
Vision 2030.
Building on the success of
the first PIF Program 20182020, an updated business
plan was approved to cover
the period of 2021-2025,
maintaining alignment with
the updated Vision 2030
plans and targets.
2
1
Strategic
Review
A YEAR
IN
REVIEW
2022
The Public Investment Fund
(PIF) maintained its upward
trajectory and achieved significant
progress
throughout
2022,
marking a momentous year of
domestic
and
international
accomplishments for the Fund.
A year in
review 2022
Annual
Annual
Report 2022
Report 2022
The
Fund
successfully
established
pioneering
enterprises, fostered exciting
new partnerships, and supported
innovative technologies with the
potential to create a better
tomorrow for Saudi Arabia.
22
2
3
2
2
2
3
Strategic Review
A year in
review 2022
1
3
• Saudi Real Estate Refinance Company (SRC) signed the largest bank
refinancing deal with Saudi National Bank
(SNB) worth SAR 1 BN.
• Saudi Arabian Military Industries (SAMI) signed a manufacturing license
agreement with NIMR.
• Lucid Motors announced a SAR 11.75 BN deal to merge with Churchill
Capital Corp IV.
• Ma’aden
credit announced net profits of SAR 5.2 BN.
• facility.
Noon opened the largest Customer Fulfillment Center in Saudi Arabia.
• Red Sea Global successfully closed a SAR 14.1 BN loan as the first
ever Riyal-dominated Green Finance
• Saudi Real Estate Refinancing Company has reached a total of SAR 13.7
BN of local Sukuk issued.
• PIF partnered with Saudi Telecom Company (STC), the largest mobile
operator in the Kingdom by market size, to establish an Internet of Things
(IoT) company.
• Ma’aden launched the “Tharwah” Local Content program to increase
Ma’aden’s Local Content contribution to SAR 33 BN and create up to
47,000 local jobs by 2040.
• SALIC and Minerva Foods announced the acquisition of 100% of issued
shares in the Australian Lamb Company (ALC), for AUD 400 MN (approx.
SAR 970 MN).
FIR
QUAR
ST
TER
2
SECO
QUAR
ND
TER
• Sanabil Investments committed USD 605 MN to private investments.
• Saudi Investment Recycling Company (SIRC) launched SAIL marine
operations for environmental services.
• Saudi Real Estate Refinance Company (SRC ) received an award for
being the best Sukuk issuer in Saudi Arabia.
• Ma’aden announced the completion of preparatory activities for its third
ammonia plant in the Ras Alkhair Industrial City and awarded operations
contracts for the Mansourah and Masarrah gold mine projects.
• Tarshid’s projects have delivered a combined energy saving of 5 TWh
which is equivalent to 2.9 MN metric tons of carbon emission reduction,
48.9 MN tree seedlings grown, and 8.2 MN barrels of oil burnt.
2
4
Annual
Report 2022
THIRD
QUAR
TER
4
FOUR
TH
QUAR
TER
• Americana Restaurants International shares surged on market debut; the
offering was 58 times oversubscribed
and raised USD 1.8 Bn in IPO.
• Sanabil 500 MENA Seed Accelerator took place resulting in USD 8.5 MN
in investments.
• The launch of the Regional Voluntary Carbon Market Company (RVCMC)
took place in collaboration with Saudi Tadawul Group.
• Badeel and ACWA Power formed a partnership to develop the region’s
largest solar energy plant.
• Arabian Drilling Company (ADC) successfully completed its IPO with
shares listed on the Saudi Exchange. The
offering was oversubscribed 61 times with an offering size of SAR 2.7 BN.
• Marafiq successfully completed its IPO with shares listed on the Saudi
2
Exchange.
5
• HRH Crown Prince Mohammed bin Salman Al Saud announced King
PIF
VISION
REALIZA
TION
PROGRA
M
PIF plays a vital strategic
role within the Kingdom’s
Vision 2030 to lead the
charge in building a national
economic transformation for
positive, sustainable change in
Saudi Arabia.
Sources of
Funding
PIF
supports
the
development of the local
economy, aims to expand
its portfolio of international
•assets,
Retained
earnings
from
alongside
maximizing
investments
sustainable
returns for the
•national
Capital
injections
economy. from the
government
PIF entered
a second
•In 2021,
Government
assets
phase
of strategic
transferred
to PIF growth
•through
Loansthe
andVision
debtsRealization
Program
(VRP) 2021-2025.
instruments
Expected
Impact
Cumulative non-oil GDP
SAR
contribution
1.2 TN
1.8
Cumulati
vely
Job
creation
Direct Objectives
• Grow the assets of the Public
Investment Fund
• Unlock new sectors through
the Public Investment Fund
• Build strategic economic
partnerships through the
Public Investment Fund
• Localize cutting-edge technology
and knowledge through the
Public Investment Fund
Strategic
•Pillars
Launch and grow domestic
•
•
•
•
•
2
6
Annual
Report 2022
PIF Vision
Realization Program
Strategic
Review
•
sectors
Develop domestic real estate
projects
Develop giga-projects
Grow and diversify PIF’s assets
internationally
Support national development
and act as an enabler of Vision
2030
Exploit portfolio synergies and
create strategic and
operational value
Diversify funding and
strengthen PIF’s balance sheet
Direct, indirect and
induced jobs
MN
Target by
2025
Assets Under
Management (AUM)
SAR
Baseline: SAR 1.5
Tn
in 2020
TN
New Local
4
Contribution to local
content
60
SAR
%
1.2 TN
Including PIF and its
portfolio companies
Cumulative Non-governmental
Investments
Includes domestic and foreign
direct investment
Share of PIF Assets in
New Sectors
21
%
SAR 150 BN
Investments
Baseline :
15% 2020
Share of PIF Assets in
International Sectors
Annual
Minimum
Baseline: 30%
in 2020
13 Strategic
Sectors
24
%
2
7
Strategic Review
SHOWCA
SING THE
FUND
Showcasing
the Fund
Annual
Report 2022
Investing in the
future:
Supporting New
Sectors
Making Change
Happen
PIF
is
committed
to
supporting the Vision 2030
aspiration to diversify the
Kingdom’s
economy
by
unlocking opportunities in new
sectors. These include hightech, high-growth sectors such
as gaming and the wider
creative industries, as well as
businesses and initiatives that
support the rapidly expanding
travel and tourism industries.
28
2
9 8
2 2
9
Annual
Annual
Report2022
2022
Report
Strategic Review
Showcasing
the Fund
GATEWA
Y TO
THE
WORLD
CONNECTING THE
KINGDOM TO THE
WORLD
The
King
Salman
International
Airport
masterplan was unveiled in
2022 to transform the existing
airport and its surrounding area.
The ambitious plan is designed
to
accommodate
projected
growth
by
enhancing
capacity,
facilities,
and
connectivity. Once completed,
the remodeled airport complex
will position Riyadh as a global
logistics
hub,
stimulating
transport, trade, and tourism.
King Salman
Airport
By 2050, the new airport is
expected to accommodate up
to 185 MN passengers and
process 3.5 MN tons of cargo.
3
Covering
an
area
of
0
approximately
57
square
The remodeled airport aligns with
Saudi Arabia’s Vision 2030 and
the aim to elevate Riyadh to be
among the top ten city
economies globally and support
population growth to be around
15 million people by 2030. The
airport will reflect Riyadh’s
identity and Saudi culture in its
design, aiming to offer a unique
travel experience.
Accommodate
up to
185MN
passengers and
3.5
process
tons of
MN
cargo
With a highly skilled team in place,
AviLease Aircraft Leasing
AviLease is poised to establish
The launch of AviLease in 2022
signaled a significant move by the
Kingdom as it unlocks the
potential of the air transport sector
to drive traffic in alignment with
Vision 2030 objectives.
itself as a major global player in
the aviation industry and become
a national champion in the aircraft
leasing market.
AviLease is focused on leasing,
trading, and asset management
servicesnew
for cutting-edge
The
businessisaaircrafts
key
from leading manufacturers.
component
of Saudi Arabia’s
growing aviation ecosystem and
demonstrates PIF’s investment
approach
to
diversify
the
economy, contribute to non-oil
GDP growth, and support a
thriving aviation sector, in line with
Vision 2030.
3
1
Strategic
Review
Showcasing
the Fund
Annual
Annual
Report2022
2022
Report
Delivering
a Low
Carbon
Ceer
Electric
Future
Vehicles
Achieving a lower carbon future
demands changes in transportation,
leading to a growing demand for
electric vehicles. In 2022, His Royal
Highness,
Crowna rangePrince
Ceer
aims to produce
of
Mohammed
Salman inbin
electric
vehiclesbin
for consumers
Abdulaziz
launched
Saudi Arabia
and the Ceer,
MENAthe first
Saudi
The electric
region.
launch vehicle
alignsbrand.
with PIF’s
strategy to unlock new sectors,
diversify the economy, and achieve
the goals of Vision 2030.
Additionally, Ceer contributes to
Saudi Arabia’s carbon emissions
reduction
Ceer
willefforts
alsoandsupport
sustainability
an
initiatives. industry and ecosystem
emerging
that attracts both international and
local investments, generates job
opportunities, enables the private
sector, and contributes to Saudi
Arabia’s GDP growth over the next
decade.
3
2
Ceer will
create up to
direct and
indirect jobs
30,0
00
and
SARCeer is
projected to
directly
to Saudi
BN
contribute
Arabia’s GDP
30
Supporting
Carbon
Markets
In 2022, several initiatives were
undertaken to support the
transition to a low-carbon
economy.
In March, PIF launched the
Voluntary Carbon Market (VCM),
bringing
together
leading
businesses to connect the
supply and demand of carbon
credits.
This led to the establishment of
the Regional Voluntary Carbon
Market Company (RVCMC), a
partnership between PIF and
Saudi Tadawul Group Holding
Company.
The establishment of RVCM
company
expands
Saudi
Arabia’s role in addressing the
impact of climate change and
One of the RVCMC’s major
actions in 2022 was conducting
the largest-ever auction of
carbon credits at the Future
Investment Initiative conference in
Riyadh. The auction successfully
sold 1.4 MN tons of carbon
credits to 15 Saudi and regional
entities across various sectors.
These efforts by PIF demonstrate
its commitment to driving
investment and innovation to
address
climate
change,
develop the green economy,
create
jobs,
and
provide
investment opportunities for the
private sector.
3
3
Strategic
Review
Portfolio
Review
Portfolio
Review
The Public Investment Fund
has emerged as a prominent
global sovereign wealth fund and
investor, distinguished by its
leadership in the industry.The
Fund has assembled a wellrounded investment portfolio that
spans over various sectors, asset
classes, and geographies. This
diversified
approach
has
positioned PIF as a formidable
presence in the investment
landscape.
Annual
Annual
Report 2022
Report 2022
The Investment Pools will be
strategically deployed to support
the transformation of the Saudi
Arabian economy and enhance
the quality of life for future
generations. This year, PIF is
focused on delivering tangible
outcomes for Saudi Arabia.
34
3
5
3
4
3
5
2022 Peformance
Review
Strategic
Review
2022 Peformance
Review2020
GROSS ASSETS 1
UNDER
MANAGEMENT 1
GROSS
202
1
UNDER
ASSETS
MANAGEMENT
SAR
1,544 BN.
SAR
1,980 BN.
22
7
27
INTERNATIONAL
CAPITAL
10 SAUDI
MARKETS
EQUITY
PROGRAM
HOLDING
2 S
54 SAUDI
SECTOR
DEVELOP
0 MENT
SAUDI REAL
AND
61 ESTATE
INFRASTRUCTU
SAR BN.
INTERNATIONAL
STRATEGIC
INVESTMENT
INTERNATIO
NAL
DIVERSIFIED
POOL
99
11
44
7
RE
TREAS
DEVELOPMENT
URY
SAUDI
GIGAPROJECTS
1-TOTALS MAY NOT BE IDENTICAL TO SUMS
DUE TO ROUNDING.
3
6
39
0
66
INTERNATIONAL
SAR BN.
STRATEGIC
INVESTMENT
INTERNATIO
NAL
DIVERSIFIED
POOL
INTERNATIONAL
CAPITAL
MARKETS
PROGRAM
SAUDI
EQUITY
HOLDING
S
12
0
48 SAUDI
DEVELOP
3 SECTOR
MENT
REAL
31 SAUDI
ESTATE AND
INFRASTRUCTU
RE
8 TREAS
DEVELOPMENT
URY
17 SAUDI
GIGA0 PROJECTS
35
39
7
Annual
Report 2022
202
GROSS ASSETS2
UNDER
MANAGEMENT
SAR
2,234 BN.
SAR Bn. INTERNATIONAL
23 STRATEGIC
INVESTMENTS
4
10 INTERNATIO
NAL
DIVERSIFIED
POOL
INTERNATIONAL
9
16 CAPITAL
MARKETS
SAUDI
9 PROGRAM
71
EQUITY
HOLDING
847 SSAUDI
SECTOR
DEVELOP
SAUDI
MENT REAL
0
ESTATE AND
20
4
12
1
20
4
INFRASTRUCTU
RE
SAUDI
DEVELOPMENT
GIGAPROJECTS
TREAS
URY
Percentage
of AuM
2022
2021
10
%
10%
20
20
%
3
3%
%5 %
3%
%
8%
8%
%%
32
%
21 %
%
%
99 %
%
%
55 %
%
%
99 %
%
%
6
6%
24
24
%
16
16
%
99
%
22
%
20
20
%
SAR51
2
INTERNATIONAL
INVESTMENTS
B
n.
SAR1,7
17
B
LOCAL
INVESTMENTS
n.
With SAR 2,234 Bn under management, the investments have been diversified with
International investments comprising 23%
Local investments 77% (and Treasury Pool) of the total.
1 TOTALS MAY NOT BE IDENTICAL TO SUMS DUE TO ROUNDING.
2 PIF AUM INCLUDES RECEIVABLES FROM OTHER PARTIES WORTH 5 BN SAR.
3
7
Strategic
Review
2022 Peformance
Review
THE PUBLIC
INVESTMENT
FUND’S
PERFORMANC
E IN 2022
Annual
Report 2022
1
1. The total shareholder return since the start of the Vision
Realization Program on September 30, 2017 until End
of 2022 (on an annual basis).
3
8
3
9
Strategic
Review
2022 Peformance
Review
Annual
Annual
Report 2022
Report 2022
Global
Reach
and Impact
PIF is the Kingdom’s primary investment arm,
mandated to support strategic diversification
and growth in Saudi Arabia. PIF is working
closely alongside carefully selected global
strategic
partners
and
sector-leading
investment managers to achieve this. This
supports PIF in achieving attractive financial
returns and creating long-term value for the
Kingdom.
40
4
1
4
0
4
1
Strategic
Review
Saudi
Investment
Pools
Annual
Report 2022
Strategic
Approach
In line with PIF’s new strategy
and the ambitions of Vision
2030, PIF’s investments are
guided
by
the
following
principles:
Investment
Pools
Saudi Equity
PIF’s portfolio is divided into the
following six investment pools,
in addition to International
Capital Markets Program and
Treasury Pool.
4
2
Holdings
(SEH)
Saudi Equity
Repres
Holdings
ents
Of The Total
AUM
PIF is a strategic investor and
stakeholder in many of Saudi
Arabia’s leading organizations.
The Fund effectively connects
Saudi companies from a range of
key sectors with the strategic
priorities of the Kingdom, making
PIF a catalyst for positive change
and a key driver for the realization
of Vision 2030.
As
a
recognized
national
champion for established national
businesses
and
emerging
businesses in strategic growth
sectors, PIF has holdings in a
portfolio of publicly listed and
private sector companies. It
also invests in other local funds
focused on equities listed on
the Saudi Stock Exchange.
32%
PIF’s focus is to optimize and
maximize the value of its assets
4
in the SEH pool, acting as 3a
Strategic
Review
Saudi Sector
Development
(SSD)
The Public Investment Fund was
established to direct strategic
capital into high priority and high
potential sectors, supporting the
economic
growth
and
diversification of the Saudi
economy. Over the past five
decades,
The
SSD investment
PIF
has poolhad
is
remarkableonsuccess
focused
establishing
in delivering
and
this mission.the growth of highpromoting
priority sectors in the Saudi
economy, through direct and
indirect investments in new and
emerging
sectors
and
companies
in
the
Kingdom.These
By
powering the private
investments
sector
accelerate
to
develop and
diversification
strengthen these
and
dynamism
strategic
sectors,
in thePIF
economy
investments
and
unlock latent
also
generate
potential.intellectual
property
and
new
technologies, creating new
future-focused
employment
opportunities for Saudi nationals
and residents.
4
4
Annual
Report 2022
Saudi
Investment
Pools
2022
Performance
The value of the
consistin
portfolio
g of
Compa
nies
80
SAR
470 BN
in 2022
Represe
21%
nting
of the Fund’s
total AUM
4
5
Strategic
Review
Saudi
Investment
Pools
Annual
Annual Report 2022
Report 2022
SSD Pool
Achievements
• SAMI ranked among the Top
100 defense
companies
globally
according
to
Defense
News Rating
and secured SAR 7 BN for
• SAMI
major future
signed
projects.
10
major
agreements
with
the
Ministry of Defense, agreed to
build combat
ships for the
Royal Saudi Naval Forces,
and
signed a preliminary
• SAMI
agreementalso
to establish
signed a a
joint venture with Boeing.license
manufacturing
agreement
with
NIMR,
the
leading
manufacturer
of
combat• SALIC
proven wheeled
and Minerva
militaryFoods
vehicles.
announced
the acquisition
of 100% of issued shares in
the
Australian
Lamb
Company (ALC), for AUD
400 MN (approx. SAR 970
MN).
4
6
• SALIC acquired a stake in the
global
food
and
agricultural business Olam
Agri.
• Saudi
Tadawul
Group
launched
single
stock
futures
on
the
Saudi
Exchange representing a
major milestone for the group.
47
4
7
Strategic
Review
Saudi
Investment
Pools
Annual
Report 2022
• The
Regional
Voluntary
Carbon Market Company
was
launched
in
collaboration
with Saudi
Tadawul Group.
• Saudi Real Estate Refinance
Company signed the largest
bank refinancing deal with
Saudi National Bank (SNB)
worth SAR 1 BN.
• Tarshid
completed
the
replacement
of
around
2,570,000 street lights from
conventional
to
LED
across the Kingdom.
• ACWA Power signed a
Memorandum
of
Understanding (MoU) with
South Korea’s POSCO
Holdings to jointly explore
the
production of green
hydrogen
and
green
ammonia.
44
88
4
8
• PIF subsidiary Badeel and
ACWA Power
agreed
to
develop the region’s largest
solar energy plant.
4
9
Strategic
Review
Annual
Report 2022
Saudi
Annual Report 2022
Investment
Pools
Ma’aden
a
net
announced
SAR
profit of BN
the highest
record of
financial
results for the
year 2022
5.2
National Unified Procurement
Company (NUPCO) launched the
final phase of the project of
transport, storage, and distribution
services for hospitals and health
centers in the southern region of
Saudi Arabia. This project is affiliated
with the General Administration of
Health Services at the Ministry of
Noon
opened
the largest
Defense,
which
aims to provide
center
Arabiafrom NUPCO
medicalin Saudi
supplies
customer
fulfillment
warehouses
the region.
which
spans in
over
4500
0m
It will enable the rapid delivery of
products to millions of customers in
2
Saudi Arabia.
50
5
0
5
1
Strategic
Review
Saudi
Investment
Pools
Saudi Real
Estate and
Infrastructure
Development
(SREID)
Total Assets
Under
Management
Amount to
Representing
In line with the economic
diversification,
housing,
and
quality of life objectives of Vision
2030, PIF plays a central role in
allocating capital to develop Saudi
Arabia’s real estate and critical
infrastructure. PIF continued to
build value and make considerable
progress across its SREID
portfolio during 2022. The SREID
investment pool focuses on
strategic
real
estate
and
infrastructure projects across the
Kingdom of Saudi Arabia, with
assets under management worth
SAR 204 BN.
552
2
3
These investments and projects
are
designed
to
improve
utilization and maximize the value
of the land bank. PIF also seeks to
create new infrastructure in major
cities that can ultimately drive
economic growth. The Fund
develops housing and tourism
projects and attracts real estate
companies and capital from local
and foreign investors.
Annual
Report 2022
204
9%
SAR
BN
of the Fund’s
total AUM
These
real
estate
and
infrastructure
development
projects cover all Saudi regions and
create sustainable commercial
developments
as
well
as
investment opportunities. PIF will
contribute to each region,
benefitting local economies and
supporting the prosperity of
communities and the Kingdom as
a whole.
5
35
Saudi
Investment
Pools
Strategic
Review
Annual
Annual
Report 2022
Report 2022
Saudi GigaProjects (SGP)
PIF has transformational projects
where the scale of activity is
designed to make a significant
contribution to achieving Saudi
Arabia’s strategic objectives. The
four giga-projects are: NEOM,
ROSHN, Qiddiya, and Red Sea
Global, supported through the
Saudi Giga- Projects (SGP) Pool.
All of these projects share the
breadth of ambition and a scale of
activity
that
is
truly
transformational; their objectives
are to support new industries,
sectors: and businesses that will
ultimately
In
2022, create
the Fund
new witnessed
economic
opportunities
significant
progress
that willinbenefit
all of these
Saudi
projects,
Arabia. which brings PIF closer
to its ambition to deliver sustainable
economic growth that positions the
Saudi Arabian economy for
tomorrow.
54
5
5
5
4
5
5
Strategic
Review
Saudi
Investment
Pools
Annual
Annual Report 2022
Report 2022
NEO
M
Building a New
Future
In line with PIF strategic aims,
2022 saw the establishment of
two new major tourism and
leisure destinations, TROJENA
and Sindalah.
TROJENA will be a new global
destination for mountain tourism,
offering a unique experience
based on its geographical and
environmental
diversity.
Sindalah is the first luxury
island destination in NEOM
and one of the most important
projects
supporting
Saudi
Arabia’s
national
tourism
strategy.
PIF
SAR
injected
into NEOM in
2022
25.5
57
BN
5
6
5
7
Strategic
Review
To
strengthen
connectivity,
NEOM and SAUDIA signed an
agreement
for
a
strategic
partnership to provide weekly
services
to
international
destinations from NEOM Bay
Airport (NUM).
PIF’s work continued to unlock
the potential of the creative
industries. In 2022, MBC GROUP
and NEOM signed an agreement
to establish the first AAA game
development studio in the region
5
and
NEOM Tech & Digital
8
Company, the first company to
Saudi
Investment
Pools
In the sports and leisure sector,
partnerships were also signed
with both the Extreme E-Racing
Series and McLaren Racing,
bringing two all-electric race
series together for the first time
under the banner of ‘‘NEOM
McLaren Electric Racing’’. The
year also saw shooting start on
the independent feature film “
Within Sand” in NEOM. “ Within
Sand” is the first Saudi film to be
supported by NEOM’s Media
Industries sector.
NEOM
also
continued
to
pioneer leading-edge approaches
to improving sustainability in the
built
environment.
NEOM
launched a new re-greening
initiative in collaboration with the
National Center for Vegetation
Cover
and
Combating
Desertification to rehabilitate at
least 1.5 MN hectares of land.
ENOWA, a new subsidiary
company, was established to lead
the development of NEOM’s
world-class, sustainable energy
and water systems. This will help
Annual
Report 2022
ENOWA will have a key focus on
accelerating
lab-tomarket
solutions for energy production,
particularly
hydrogen,
representing NEOM as the
principal shareholder in the
world’s largest green hydrogen
production plant in an equal JV
agreement with Air Products and
ACWA Power. This has led to
ENOWA establishing the region’s
first Hydrogen and Innovation
Development Center (HIDC).
NEOM is also working with
Japanese
trading company,
ITOCHU and Veolia, a global
leader in water, waste, and energy
management solutions, to develop
a
first-of-its-kind
selective
desalination plant powered by
100% renewable energy in
OXAGON, NEOM’s advanced
manufacturing and innovation city.
OXAGON and the Ministry of
Industry and Mineral Resources,
and the Saudi Authority for
Industrial Cities and Technology
Zones (Modon) also agreed to
collaborate to implement the
Future Factories Program.
The
selective
desalination plant
is the first of its
And NEOM’s masterplan for THE
kindits powered
LINE,
evolutionary urbanby
living
experience that puts humans first,
renewable
also
moved forward in 2022, with
the announcement of detailed
energy in
designs.
Oxagon
100
%
5
9
Strategic
Review
Saudi
Investment
Pools
Annual
Report 2022
ROS
HN
A New
Concept for a
Better Life
As part of Vision 2030, ROSHN’s
objectives
include
improving
Saudis’ quality of life by providing
access to vibrant communities
that
successfully
integrate
housing, amenities, and nature. It
has projects spread across the
Kingdom from Riyadh, Jeddah, and
Mecca to Asir, Al Kharj, and the
Eastern Region. ROSHN is
dedicated to becoming the
Kingdom’s
most
trusted
community developer
while
making long-term investments in
the future of Saudi Arabia’s cities.
660
0
1
In 2022, ROSHN launched
ALAROUS Community, inspired
by the architecture of the
historical
city
of
Jeddah.
ALAROUS will be a new
community stretching across 4
Million m2 and delivering over
18,000 new homes. It blends
modern and traditional design to
emphasize Saudi Arabia’s rich
The
culture
waterfront,
and heritage.
redeveloped
ROSHN and
also
opened
signed an
in agreement
2017, is one
to rename
of the
most
and
important
sponsor
landmarks
the
Jeddah
in
Jeddah.
WaterfrontWith
and 55transform
MN visitors
its
annually,
name into “ROSHN
it stretches
Waterfront.’’
along the
Red Sea coast with a length of 4
kilometers and consists of seven
diverse
recreational
zones
targeting families and children.
ROSHN has launched sales for
the first phase of the ALAROUS
project in Jeddah and signed a
new agreement with Al Akaria to
bring new homes and family
villas.
ROSHN’s ambition is to build
integrated residential communities
also progressed with ROSHN
signing sales agreements with
multiple developers to develop a
plot of land with an area of more
than 54,000 m2, with a value of
more than SAR 223 MN. In 2022,
ROSHN opened sales for SEDRA
Phase 2, the latest stage of its
groundbreaking development in
Riyadh which will bring an
additional
2,171
beautifully
designed
homes
to
the
development, which has nature at
its heart.
ALAROUS
will be a
stretching
new
community
across
MN
m2
4
18,0
new
homes
00
6
16
Strategic Review
Qiddi
ya
Qiddiya will be a
new global
destination
focused on
offering
innovative and
immersive
entertainment,
sports, arts, and
cultural
experiences.
6 62
2
3
Saudi
Investment
Pools
Qiddiya’s
wide
range
of
offerings will be based on five
cornerstones:
Sports
&
Wellness;
Nature
&
Environment;
Parks
&
Attractions; Motion & Mobility;
and Arts & Culture.
The aspiration is that Qiddiya
will
become
a
leading
destination, not just in Saudi
Arabia, but in the world. Qiddiya
will include family-friendly theme
parks, sports arenas suitable for
international
competitions,
academies for sports and arts,
concerts, and entertainment
venues,
racetracks
for
motorsport enthusiasts as well
as outdoor and adventure
activities. Throughout 2022, the
company continued to advance
plans to create a world-class
entertainment, sports and arts
center.
Subsequently, Qiddiya will also
include a variety of real estate
options and community services.
It will be a place where future
generations enjoy, appreciate,
aspire, advance, and nurture
their potential; a place that
unlocks opportunities and new
Qiddiya
signed
professional pathways
to major
help
sponsorship
build a more agreements
prosperous with
and
progressive
society.
leading
Saudi
football clubs,
Alhilal FC and Al Nasr FC. These
strategic partnerships are worth
SAR 100 MN to each club and
reflect the growing international
profile of football in Saudi Arabia.
An agreement was also signed to
develop another major attraction,
with Qiddiya awarding a SAR
2.8 BN contract to develop the
region’s biggest
waterpark and the first within the
Kingdom.
Annual
Report 2022
Qiddiya
SAR
awarded a
contract to
develop the
BN
region’s
biggest
waterpark
2.8
6
36
Saudi
Investment
Pools
Strategic
Review
Annual
Report 2022
This year,
RSG
announce
d
that
loan
SAR
it
has secured
facility
its term
14.1
BN
Red Sea
Global
The Red Sea Development
Company was established to drive
the development of The Red Sea
Project,
the
world’s
most
ambitious regenerative tourism
program and luxury destination
created around one of the
world’s
foremost
natural
treasures.
Offering a wide range of
personalized experiences, the
destination will encourage visitors
to explore the wonders and rich
6
cultural
heritage of Saudi
4
Arabia’s Red Sea Coast.
In
2022,
the
Red
Sea
Development
Company
announced its transformation into
“Red Sea Global (RSG).” This
change
reflects
RSG’s
expanding mandate to oversee a
growing number of projects
stretching the length of the Red
Sea coast of Saudi Arabia, with
the potential to expand beyond
the Kingdom in the future. The
expanded mandate also includes
establishing
a
series
of
subsidiary businesses to drive an
uplift in the Saudi tourism sector
and associated industries.
Driving this ambition forward, in
2022,
three
new
hotel
management agreements were
signed with international hotel
brands to operate resorts in the
first phase of development at
the Red Sea Project. These
hotels include Ritz Carlton
Reserve, Miraval Hotels and
Rosewood, bringing the total to
12 hotel brands that aim to
create a diverse and high-end
travel and tourism offering that
can compete globally.
This year, RSG also maintained
its investment in the infrastructure
required to underpin the growing
travel and tourism sector in the
region. In 2022, RSG awarded
the operations contract for a
major new hospital to the
Steward
Global toHealthcare
RSG
alsoAlf
continued
invest in
research
Company.to build up a detailed
understanding of the best way to
continue to develop tourism in the
region in a way that is balanced
with
environmental
considerations. In 2022, RSG
released the findings of one of the
world’s
largest
environmental
surveys of wildlife ecosystems,
carried out in the Red Sea area.
This
year, was
RSGshared
announced
that
The study
with worldit
has achieved
Financial Close
leading
scientists
and
on
its SAR 14.120
BN (USD3.76
governmental
organizations
at
BN)
and
the UNterm
Worldloan
Oceanfacility
Conference
revolving
in Lisbon. credit facility with four
leading Saudi banks: Banque
Saudi Fransi, Riyad Bank, and
Saudi British Bank, with Saudi
National
Bank
acting
as
Mandated Lead Arrangers.
6
5
Strategic Review
Internation
al
Investment
Pools
INTERNATIO
NAL
STRATEGIC
INVESTMEN
TS (ISI)
The Public Investment Fund
invests strategically around the
globe both in partnership with
selected international investors
and
allows
us to
The independently.
ISI investment ISI
pool
has been
deploy
significant,
high-impact,
developed
over time
as a longwellterm
capitalportfolio
and generate
attractive
balanced
of long-term,
long
returns
for the
Fund that
direct,term
and
indirect
investments.
can
used to have
drive been
the
These beinvestments
Kingdom’s
established further
throughtransformation.
a series of
strategic partnerships with global
companies and investors. This
leverages in additional finance,
and contributes to expanding the
Kingdom’s global reach and
6
impact.
6
International
Investment Pools
Annual
Report 2022
The ISI pool is designed to
support the Fund’s strategic
•objectives
Establishing
by: strategic
relationships and partnerships
with innovative companies,
investment managers, and
influential investors to allow
Saudi Arabia to extend its
global reach and influence.
• Investing in cutting-edge
technology and/or shaping the
future of the global economy
• Growing
andthe
diversifying
by enabling
growth and
PIF’s
assets
andsectors
returns.and
creation
of new
opportunities.
• Bolstering Saudi Arabia’s
position on the world stage
as a leader and enabler of
the future global economy
and building its international
reputation as a preferred
investor and partner of
choice.
• Supporting the creation of
opportunities to attract foreign
investments and the
localization of content and
technologies, where possible.
• Supporting Government -ToGovernment relationships.
The ISI portfolio consists of largescale investments in a range of
prominent
companies,
innovative unicorns, and industry
leaders around the world. This
diversified investment approach
ensures a balanced approach to
6
7
International
Investment Pools
Strategic
Review
INTERNATIO
NAL
STRATEGIC
INVESTMEN
TS (ISI)
NEWCASTLE
FOOTBALL CLUB
UNITED
PIF has led an investment group,
also comprising PCP Capital ranking
Partners and RB Sports & Media, to
complete the 100% acquisition of
Newcastle United Limited and
Newcastle United Football Club
Limited from St. James Holdings
Following
PIF-ledapprovals
purchasehave
of
Limited. Allthe
requisite
Newcastle
Unitedfrom
Football
in
been obtained
the Club
English
2021,
club has been achieving
Premierthe
League.
sporting and commercial successes.
New sponsorship agreements are in
place, while on the pitch the Club
reached its first cup final since 1999
and is well positioned to secure a
place in next year’s Champions
League. This will both increase
revenues and build the profile of the
Club globally.
BLACKSTONE
BRAZILIAN PROGRAM
In October 2019, during the
Future
Investment Initiative, PIF
announced its intention to invest up
to USD 10 Bn in the Federative
Republic of Brazil. PIF is currently
building
relationships
to
help
execute this program in accordance
with PIF’s goals and strategy. To
date, PIF has committed to two
Funds in private equity and
infrastructure.
US
INFRASTRUCTU
RE
INVESTMENT
PROGRAM
PIF has committed up to USD 20 Bn
to the “Blackstone Infrastructure
Fund Program,” one of the largest
dedicated
infrastructure
Fund
programs in the world, which mainly
ACCORINVEST
aims to modernize US infrastructure
PIF
joined forces with a group of
at scale.
investors to acquire a stake in the
French
company
in
2018.
Accorinvest is both owner and
operator of hundreds of hotels
worldwide, largely focused on
Europe.
FRENCH PROGRAM
LUCID GROUP
In 2018, PIF invested in Lucid
Group, a US electric vehicle
manufacturer.
Since
PIF’s
investment, the company has made
many breakthroughs.
Lucid finished the first phase of its
Casa Grande, Arizona, factory with
an initial production capacity of
30,000 units per year and up to
400,000 units annually.
UBER
PIF invested USD 3.5 Bn in Uber
Technologies. Uber is a global leader
in the transportation and technology
sectors, and is transforming mobility.
6
8
Annual
Report 2022
A memorandum of understanding was
signed with AFIC
in June 2015 to invest USD 2 Bn with
French asset managers, whereby PIF,
until the end of 2020, committed to
eight Funds for private equity, credit,
and infrastructure.
BABYLON HEALTH
Babylon Health is a telemedicine
company
which
offers
virtual
consultations
with
doctors,
a
symptoms checking service and
chronic condition management through
its app. PIF, along with others, invested
in the company which targets putting
accessible and affordable healthcare
services in the hands of people all
around the world. The application
employs cutting-edge technologies like
AI used as a chatbot interface for
patients and helps doctors by
downloading patient records and
MAGIC LEAP
Magic Leap is a mixed/augmented
reality technology company based in
the US. PIF is a major investor in the
company.
JIO PLATFORMS
Jio
Platforms
is
a
leading
telecommunication
and
digital
services platform in India. PIF has
invested USD ~1.5 Bn to acquire a
~2.32% equity share in the company.
SOFTBANK VISION FUND
PIF is the major investor in SoftBank
Vision Fund, one of the largest
technology focused investment Funds,
after allocating USD 45 Bn. Since its
inception, the SoftBank Vision Fund
continues to invest across many
technology sectors, such as Internet of
Things (IoT), Artificial Intelligence,
Healthtech and Fintech.
RELIANCE RETAIL
Reliance Retail is the largest
physical retailer in India. PIF has
invested USD~1.3 Bn to acquire
a
~2.04% equity share in the
company.
6
9
International
Investment Pools
Strategic
Review
LUC
ID
Luxury
electric
vehicle
manufacturer Lucid Motors signed
deals this year to build a
production factory in Saudi Arabia
with an annual capacity of 155,000
zero-emission electric vehicles.
The new Saudi factory is
expected to address the growing
global demand for Lucid electric
vehicles by increasing Lucid’s
global production capacity middecade to 500,000 EVs per year.
Annual
Annual
Report 2022
Report 2022
Lucid Motors announced the
completion of an
additional
public
offering
program
market,
where
the
company
in the financial
issued
shares worth
It will also help to catalyze the
transformation of Saudi Arabia’s
economy through Saudi Vision
2030 and the Saudi Green
Initiative. The government of
Saudi Arabia also reaffirmed its
commitment to purchase up to
100,000 Lucid electric vehicles
over a ten-year period.
600
USD
MN
in the public markets, and
the
Investment
USDPublic Fund
invested
915
1.
5
providing the company with
liquidity of
MN
USD
BN
70
7
1
7
0
7
1
Strategic
Review
International
Investment Pools
Annual
Report 2022
International
Diversified
Pool (IDP)
In support of PIF’s strategic objectives and
long term financial performance, the IDP plays
a key role in diversifying the Fund’s assets
globally, tapping into a wide range of asset
classes and geographies, ensuring a wellbalanced, risk weighted portfolio.
The Fund’s IDP investment pool is a key
contributor to the overall diversification of
PIF’s asset base, deploying a long-term
strategic asset allocation approach that
promotes effective wealth accumulation and
income generation.
It seeks to maximize long-term returns by
investing in liquid and illiquid international
assets, in line with a predetermined risk
appetite and threshold, tapping into globally
deep asset classes, including fixed income,
public equities, private equities, real estate
and infrastructure, alternative investments
(including
hedge
funds)
and
direct
investments.
To fulfill its mandate, the IDP pool follows a
stringent
governance
and
investment
methodology, including:
• Be a long-term institutional investor
seeking to benefit from
investment
opportunities and market inefficiencies.
7
•2
Add value through strategic asset allocation,
manager and security
selection, and
7
3
Strategic
Review
International
Investment Pools
Annual Report 2022
Report 2022
International
Capital Markets
Program (ICMP)
PIF’s ICMP was launched in 2020
to capitalize on significant macrotrends
and
time-sensitive
opportunities arising from the
impact of
the COVID-19
pandemic.in
ICMP
invests
opportunistically
emergent global trends across
selected geographies and sectors,
including
Telecommunications,
Energy, Consumer goods, Finance,
In
the second
year of the
program,
Healthcare,
Information
Technology,
ICMP
continued
to
seize
and others.
opportunities to deploy capital,
reinforcing the Fund’s global
mandate and increasing assets
under management to support
attractive long term investment
returns.
With investments under ICMP
diversified across a range of
countries globally, including the
United States of America, United
Kingdom, Japan, France and the
Netherlands, total assets under
management grew in 2022 to SAR
169 BN, which is 8% of AUM.
Total Assets
Under
Management
grew in 2022
to
SAR
169
BN
Representing
8%
75
of PIF’s AUM
7
4
7
5
Treasury
Pool
Strategic Review
Treasury Pool
(NonInvestment
PIF’s Treasury Pool acts in a
fiduciary capacity as a guardian
Pool)
of the Fund’s liquidity. It
7
6
deploys capital to generate
returns,
while
actively
managing risk and ensuring
The
Treasury
function
capitalFund’s
availability
to Fund
PIF’s
acts
support
overall
strategicto
objectives.
investment
and
growth
strategies by optimizing liquidity
to generate targeted returns
within the defined benchmarks
and investment guidelines.
Treasury Pool also provides
continuous
assessment
and
projections of PIF’s liquidity profile,
identifying any shortfalls and
funding
requirements.
The
Treasury
Pool’s
investments are guided by the
following principles:
• Preserving capital by investing
in assets with low probability
of principal loss.
• Managing PIF liquidity to meet
discretionary
and
nondiscretionary
financial
• obligations identified through
budgeting and cash flow
management.
Minimizing risk from foreign
currency
exposure,
by
restricting investments in
SAR,
USD
and
other
recognized
reserve
currencies.
Annual
Annual
Report2022
2022
Report
PIF’s Treasury investments are
organized into the following
liquidity tiers, with distinct
investment
guidelines
for each
• Tier 1: Working
Capital
tierPortfolio.
and its sub-components:
• Tier 2: Medium Term
Investments.
• Tier 3: Investments in
bonds, loans, and sukuk in
local markets.
7
7
Strategic
Review
ESG
Review
Annual
Annual Report 2022
Report 2022
ESG
REVIEW
PIF is committed to shaping a
sustainable future for Saudi
Arabia by balancing economic,
social, and environmental goals.
79
7
8
7
9
ESG
Review
Strategic
Review
Investment
Shaped by
Values
Over the past year, PIF has
accelerated
its
efforts
to
mainstream
ESG
principles
across all of its activities and those
of its portfolio companies. This has
helped to align efforts to
incorporate ESG into long-term
strategies, policies, procedures,
and day-to-day operations. The
Fundkey
On
hasmetrics
also improved
this hasitsled
data
to
collection and
measurable
improvements
reportingin PIF
to
monitor progress
performance
against
transparently.
identified
ESG objectives. PIF remains
ambitious to achieve more, and
will continue to focus on driving up
ESG performance in the years
ahead.
8
0
Delivering
Change
The commitment of PIF and its
portfolio companies has resulted
in tangible outcomes in 2022.
This year, PIF issued the firstever green bond by a sovereign
wealth fund, raising USD 3 BN.
This will support investment in
green projects across Saudi
Arabia, including green buildings,
renewablekey energy,
Another
focus has energy
been
efficiency, the
supporting
andsustainable
continuing growth
water
of
management. energy
renewable
in
the
Kingdom. In 2022, PIF invested
through Badeel, a wholly-owned
subsidiary, in the Sudair Solar PV
project. The Sudair Project is the
first
project
under
PIF’s
renewable energy program, with
an
investment
value
of
approximately SAR 3.4 BN. When
operational, Sudair will produce 1.5
gigawatts (GW) of renewable
energy, powering 185,000 homes.
PIF investment is also positioning
Saudi Arabia as a renewable
energy leader globally. PIF
portfolio company ACWA Power
this year signed agreements to
develop
the
1.5
GW
Karakalpakstan wind project in
Uzbekistan.
Additionally,
PIF
launched the Regional Voluntary
Carbon
Market
Company
(VCM). The VCM will offer
guidance and resources to
support businesses and industries
in the region as they play their part
in the global transition to net zero.
Following its establishment, VCM
facilitated the successful auction
of 1.4 MN tons of carbon credits,
the world’s largest-ever carbon
credit sale.
Annual
Annual
Report2022
2022
Report
Focus on the
Future
2022 was a significant year for
sustainability at PIF, both in
terms of changing how the Fund
itself operates and investing to
support businesses that share the
ambition to deliver balanced future
growth. The ESG journey will
continue into 2023 and beyond,
with PIF continuing to spearhead
green projects, investments, and
initiatives.
VCM
facilitated the
successful
auction MN
of
of
carbon
tons
credits
1.4
8
1
Investing in
People,
Technology &
Relationships
Strategic
Review
Investing in
People,
Technology
&
Delivery
Driven
Relationship
by
s Talent
Creating a
Culture of
Innovation
During 2022, PIF maintained
progress in developing people,
technology, and relationships.
Throughout the last 12 months,
PIF has:
The range, scale, and complexity
of PIF’s operations requires a
world-class
team
able
to
translate key strategic objectives
into tangible impact for the
Kingdom. PIF has established a
reputation as an employer of
choice in the Kingdom. The
Fund
remains
focused
on
continuously attracting, engaging,
developing, and empowering
Developed the
the
the workforce
it required Improved
to
process,
deliverskills
on itsand
mission.
competencies of
our staff through
learning and
development.
8
2
Annual Report 2022
Report 2022
systems, and
technology in
place to support
the business.
Increased the
visibility and
profile of the
Fund both locally
and globally.
PIF continued in 2022 to ensure
that the business structure can
direct the team’s skills and
resources on the issues that drive
In
2021, PIFimprovements.
implemented a new
performance
organizational
structure
designed to enhance efficiency
and maximize the potential of the
PIF core team. In 2022, PIF
worked to embed that new
structure and align the work of
divisions,
departments,
and
individual staff to create a clear
line has
This
of entailed
sight between
a process its
of
overarching
detailed
collaboration
strategic objectives
with the
and frontline
divisional
and activities.
department heads to
evaluate their structures and to
embed robust organization design
principles, aligning employees to
those structures and ensuring
clarity of
management
There
has
also been oversight.
a specific
focus
on
supporting
PIF’s
Compliance
&
Governance
Division to enhance the Fund’s
overall capability and to drive
greater
organizational
effectiveness. This has improved
the robustness of decision
making
and
provided
a
foundation
that
empowers
individual departments and staff
members to operate in a way that
ensures alignment of activity with
key strategic priorities.
83
8
3
Investing in
Technology
&
People,
Relationships
Strategic
Review
Workforce
Planning
Workforce planning is critical if
PIF is to align human resource
needs with the Fund’s strategic
goals and objectives.
In 2022, PIF strengthened the
mechanisms that are in place to
empower the Fund’s skilled
team to shape the future through
targeted investment. PIF has
now
incorporated
annual
workforce planning into PIF’s
Annual Operational Planning
process. This helps to identify
the skills and talents required to
8
achieve the Fund’s objectives
4
and
ensures
that
the
With this process in place, PIF
is better able to anticipate future
human resource requirements,
facilitating
the
development
of
appropriate recruitment,
training,
and
retention
strategies. This process is now
enabling
PIF
to
identify
potential skills gaps more
effectively and to
address these gaps proactively
by developing the necessary
skills in house or sourcing talent
externally.
Annual workforce planning is also
supporting
PIF
to
more
effectively manage the risks
associated
with
changing
business
environments.
By
having a clear understanding of
the
workforce
requirements
needed to meet the Fund’s
overarching objectives, PIF is
well2022,
In
placed
666tonew
respond
employees
with
agility toPIFanyduring
joined
changes
the in year
the
market,
(compared
enhancing
to
569 overall
new
efficiency and
employees
in effectiveness.
2021), resulting in
a total headcount at year-end of
1,940 employees, an increase of
33% since the end of 2021.
Annual
Report 2022
Resulting in a
total headcount
at year end of
1,940
employees
an increase of
33%
since the end
of 2021
In 2022,
666
new employees
joined PIF
8
5
Strategic
Review
Investing in
Technology
&
People,
Relationships
Building
PIF’s
Global
Profile
PIF has continued to
make headlines globally
during 2022 due to a
series of high profile
investments
and
initiatives.
886
6
7
Annual
Annual
Report2022
2022
Report
PIF’s increasing profile on the
global stage has also been
bolstered through participating
in major international events,
such as the World Economic
Forum in Davos. The Fund
utilized these platforms to
promote investment initiatives and
As
result of itsSaudi
investment
in
to ashowcase
Arabia’s
relationships
potential
asand ancollaborations
attractive
investment
destination.
with
businesses
and investors,
PIF’s profile increased globally
during 2022. This reflects the
Fund’s growing role in the
Kingdom’s efforts to diversify its
economy and position itself as a
major player in global markets.
With PIF’s significant investment
portfolio and ambitious initiatives,
PIF is likely to continue to attract
attention from investors and
industry experts in the years to
come.
8
78
Investing in
People,
Technology &
Relationships
Strategic
Review
Developing
PIF’s
Human
Capital
Through a wide range of
internal and external training
and development programs, PIF
invests in the technical and soft
skills of its employees to build
In
2022, PIFcapabilities
conducted virtual and
their
and
performance.
physical
training programs and
sessions
which
were
internally and
externallyby over
attended
940
PIF
EMPLOYEES
These programs covered a wide
range of critical
subjects that support individuals
in their roles and deliver impact
for PIF.
8
8
Annual
Report 2022
PIF
TALK
S
Breakdown of
Saudi/ NonSaudi
employees
Sau
di
1,6
01
NonSaudi
33
Tot
9
al
1,9
40
Breakdow
n by
Gender
Fem
ale
58
4Mal
e
1,3
Total
56
1,9
40
Informal
learning
plays
an
important
role
in
creating
connections
across
PIF’s
different functions and allowing
the Fund’s extended teams to
access worldwide expertise from
outside of the business. PIF Talks
is an informal learning platform that
During
2022,
a range
of their
PIF
allows elite
speakers
to share
Talks
expertise andwere
experience delivered
with PIF
employees.
encompassing
a variety of
interesting and practical topics
including sessions with ROSHN
and the Saudi Coffee Company.
These sessions have been
livestreamed to all PIF employees
and those working for portfolio
companies.
In 2022, the
PIF Talks
program
reached over
1,000
attendees
8
9
Strategic
Review
PROFESSI
ONAL
DEVELOP
MENT
PIF plays a critical function in
creating and providing job and
professional
development
opportunities within the Fund and
across its portfolio companies.
This function generates high-skilled
and high-valued employment
opportunities for the Kingdom’s
Investment
ineducationandprofessionaldevelop
next generation.
ment
initiatives across the
portfolio companies and gigaprojects
is
opening
new
employment pathways for the
young generations of Saudi
Arabia.
990
0
1
Investing in
People,
Technology &
Relationships
GRADUAT
E
DEVELOP
MENT
PROGRAM
To support the delivery of the
Fund’s
objectives,
PIF’s
Graduate
Development
Program (GDP) nurtures local
talent and facilitates skills
transfer to young Saudis. With
six
integrated
tracks:
Investment, Finance, Projects
and Consulting, Cyber Security
and Information Technology,
Business Administration and
Launched
in 2017,
theprogram
GDP aims
Public Policy
- the
is
to
develop local
talent; training
is
delivered
in partnership
with
UC Berkeley,
PWC,
Royal
delivered
at the Public
Investment
Fund
Academy in
Institution
ofRiyadh.
Chartered
Surveyors and Adkins & Matchet
Training.
Annual
Report 2022
In 2022, a
total of
Saudi
enrolled
in
the
graduates
PIF Graduate
Development
Program
wit
h
successfully
graduates
onboarded into
PIF
160
146
9
19
Investing in
People,
Technology &
Relationships
Strategic
Review
Annual
Report 2022
ACCESS TO
DIGITAL
LEARNING
PIF offers its employees access to
a wide range of digital learning
platforms, enabling all employees to
undertake relevant learning and
All
employeesactivities
enjoy
development
flexibly in a
access
to:
way that fits their professional and
personal commitments.
Digital onboarding and
induction Program
Udemy for
Business
Linkedin
Learning
Cours
era
Harvard
Spark
The Fund will continue to invest in
digital platforms and develop
relationships
with
leading
providers to further enhance the
skills of the PIF team.
9
2
COLLEGE
PREPARA
TION
PROGRA
M
This
program
The comprehensive
College
Preparation
lasts
months
and
Programfor is 18
PIF’s
sponsored
covers
of
initiative a forwidehighrange
school
subjects
including
training,
graduates to
prepare them
to
workplace
experiences
and
access a top universities.
internships, and community
volunteering.
The
program
supports the Kingdom’s most
talented
and
ambitious
students by enhancing their
experience and resume to
open up access to future
learning opportunities at elite
universities.
This
comprehensi
ve program
lasts for
18
months
In 2022, a
total of
4
Saudi
graduates
6
benefitted
from this
program
9
3
Strategic
Review
PROFESSIONA
L
QUALIFICATIO
NS (EHTIRAF
PROGRAM)
Investing in
People,
Technology &
Relationships
Annual
Report 2022
Training
Partners
PIF collaborates with the finest
academic, corporate, and learning
organizations from around the
world to support the development
of its employees and the success
of the Fund.
Graduate
Studies
In 2022, PIF collaborated with
HEC Paris Business School to
deliver a special Executive MBA
to 35 participants in Riyadh
from PIF employees, projects,
and
portfolio
companies.
Delivered in Riyadh, this is the
first time a top-tier school has
been contracted to deliver a one
of a kind EMBA in the Kingdom.
9
4
9
5
Investing in
People,
Technology &
Relationships
Strategic
Review
INFORMA
TION
TECHNOL
OGY
Successfully
completed
PIF completed 37 IT Projects during
during the year, resulting in the Projects
introduction
of
17
new 2022
Enhancing
applications. The PIF’s
Fund also
completed the automation of 388
Systems
and
processes and the development of
140
dashboards leading to very
Technology
high satisfaction
Delivering
a modernrates
and worldfrom The Fund
internal sovereign
customers. wealth fund
class
requires the most advanced achieved a
platforms
and
technology total saving
available.
Therefore,
PIF SAR
continually
investsinthe of
during
modernization
and
digital
transformation of its systems and
2022
MN
technologies. This ensures that
all PIF staff have access to the
Contracts
platforms and tools required to
increase
efficiency,
and
performance, and productivity
Procure
across
the achieved
Fund.
The Fund
a total saving
of
SAR 126 MN in 2022 through
ment
negotiation with suppliers. This
Annual
Report 2022
37
12
6
Supporting
Local
Companies
In 2022, the Fund was able to
conclude
contracts
and
purchase orders with locally
registered suppliers, accounting
for
79%
of
the
total
The
Fund for
also
its
expenditure
the continued
year.
Saudization support initiative, by
seeking locally based businesses
as contracted delivery partners.
In 2022, the Fund registered 456
companies out of which 225 are
registered locally.
The Contracts
and Procurement
Department
registered
456
Companies
during the year
2022
reflects PIF’s enduring focus on
driving efficiency to enable us to
add more value across the wider
portfolio of activities.
996
6
7
9
79
Investing in
People,
Technology
&Relationships
Strategic
Review
Annual
Report 2022
SHARED
SERVICES
CENTER
FOR
PORTFOLIO
COMPANIES
In 2021, PIF launched its Company
Builder Incubator in King Abdullah
Financial District (KAFD) to
support the success of its portfolio
companies. In 2022, PIF has
continued to provide tailored
support and accommodation to
portfolio companies to accelerate
their growth.
In addition, in 2022, PIF has
sourced more than 80,000 m2 of
office space for PIF projects and
new portfolio companies. PIF has
Furthermore,
has provided
also provided PIF
financial
services
managed
technology
and todigital
and support
services
51
NewCos during
2022 and
services
(partnering
with
STCS/SITE)
for setup
41 Newcos
assisted in the
of 15
supporting
around 2000 end-users
finance departments.
PIF
during has
2022. also focused on
strengthening the governance of its
portfolio companies through the
appointment of knowledgeable
and experienced representatives
to their boards. This is a rigorous
and robust process that is
delivered in line with best
9
governance
principles
and
8
practices
and
covers
Once board members are in
place,
PIF’s
Center
for
Governance
also
provides
mentoring and coaching support
to develop the skills of board
members nominated to serve in
portfolio
companies.
These
processes
strengthen
governance
in
line
with
international
best
practice,
safeguard PIF’s interests, and
function as a key tool for
attracting the best international
and local talent.
SHAPING THE
FUTURE OF
OUR
In
2022, TEAM
PIF’s core team
continued to grow to reflect
the expansion of the range
of
projects
that
PIF
supports.
Alongside that growth, PIF has
continued
to
focus
on
supporting
the
Fund’s
workforce to equip it with the
skills needed to deliver for both
today and tomorrow. PIF will
continue to implement the most
modern approaches, access
support from partners, and
leverage
the
power
of
9
9
technology, to build a world-
Annual
Report 2022
10
0
10
1
Governance
Review
GOVERN
ANCE
REVIEW
10
2102
3
Board of
Directors
The Public Investment Fund
follows a disciplined governance
model that encompasses all its
activities. This model ensures
strong, transparent, and informed
The Public Investment Fund is
decision-making.
steered by a Board of Directors
and chaired by the Prime
Minister, Chairman of the
Council of Economic and
Development Affairs, and the
Crown Prince of Saudi Arabia, His
Royal
Highness
Prince
Mohammed bin Salman Al Saud.
Annual
Report 2022
The Fund comes under the
purview of the Council of
Economic and Development
Affairs, which is a branch of the
Saudi Cabinet. The Board and
Board
Committees
are
composed of seasoned ministers
with experience in different fields.
In addition
The
diversitytoof members
knowledgewho
that are
the
external to bring
the Board
serve in
members
to that
discussions
the Board that
sub-committees.
ensures
a wide range of
perspectives are considered
before decisions are made. This
process is vital, as the Fund’s
activities play a leading role in
the
Kingdom’s
economic
development, ensuring proper
alignment with other government
entities and initiatives.
10
3
10
Governance
Review
Board of
Directors
Annual
Report 2022
Board Of
Directors & Board
Committee
Members
The governance framework
of PIF, bringing authority and
accountability while enabling
effective decision making,
forms an important tool for
The board of directors of the Public Investment Fund
effective
board oversight.
supervise the affairs of the Fund, which holds its
meetings four times a year, and ensures the
achievement of its objectives and the implementation
of its powers approved in accordance with its bylaws,
and with the amendment of its operational structure
approved by the board in 2016, it has received
greater powers and authority to approve rules and
internal policies and issue them.
10
4
His Royal Highness Prince
MOHAMMED BIN SALMAN BIN
ABDULAZIZ AL SAUD
Crown
Prince
Prime
Minister
Chairman of the Council of Economic and
Development Affairs
Chairman of the Public
Investment Fund Board
Chairman of Remuneration
Committee
10
5
Governance
Review
Board of
Directors
Board Of Directors
& Board
Committee
Members
H.E. DR.
IBRAHIM BIN
ABDULAZIZ
Board
Member
AL ASSAF
H.E. Dr. Ibrahim bin Abdulaziz AlAssaf currently serves as the Minister
of State and a Member of the Council
of Ministers and the PIF Board of
Directors and The Saudi Aramco
Board of Directors. He holds
membership in the Council of Political
and Security Affairs and the Council
of Economic and Development
Affairs. H.E. Al-Assaf previously
served as Minister of Foreign Affairs,
Minister
of
Finance,
Deputy
Governor of the Saudi Arabian
Monetary Authority, Member of the
Board of Directors of the World Bank
Group and Board Chair, Deputy
Executive Director of the International
Monetary Fund, Assistant Professor
and Head of Administrative Sciences
at King Abdulaziz Military College.
H.E. Al-Assaf holds a Ph.D. in
Economics
from the University of
10
6
Colorado,
USA, and a Master’s
Degree in Economics from the
H.E. DR. MAJID
BIN ABDULLAH
AL QASABI
Board Member
Chairman of Audit and
Compliance Committee
H.E. Dr. Majid bin Abdullah Al-Qasabi
currently serves as the Minister of
Commerce, and a member of the PIF
Board of Directors while presiding over
the Board’s Audit and Compliance
Committee. Previously, H.E. AlQasabi served as the Minister of
Social Affairs (Currently the Ministry
of Human Resources and Social
Development) and the Acting Minister
of Media, the Acting Minister of
Municipal and Rural Affairs & Housing.
H.E.
Al-Qasabi
was
Assistant
Professor at the Department of
Industrial Engineering at the King
Abdulaziz University, Saudi Arabia.
H.E. Al-Qasabi held the position of
General Manager of Kra Est. for
Contracting. His excellency holds a
Ph.D. in Engineering Management
(Honors) from the University of
Missouri, USA.
H.E. MOHAMMAD
BIN ABDUL MALEK
AL SHAIKH
Board Member
Currently serves as a Minister of State
and a Member of the Council of
Ministers. H.E. Al-Shaikh holds a
membership in the PIF Board of
Directors
and
the
Board’s
Remuneration
Committee,
membership
in
the
General
Committee of the Council of
Ministers, the Council of Economic
and
Development
Affairs,
the
Financial Committee in the Royal
Court and he serves as a Chairman
of the board in the Saudi Authority
of
Intellectual
Property.
He
previously served as the acting
Minister of Health, Chairman of the
Board of the General Entertainment
Authority, Chairman of the Board in
the General Sports Authority and the
Chariman of the Board in the Capital
Markets Authority, a Board member of
World Bank and the Government of
Saudi Arabia’s representative at the
World
Bank,
among
other
Annual
Report 2022
H.E.
MOHAMMED
BIN ABDULLAH
Board
Member
AL JADAAN
Chairman of Risk Committee
H.E. Al-Jadaan currently serves as the
Minister of Finance, and he holds
memberships in the following Boards:
the Council of Ministers, the Council
of Economic and Development Affairs,
the Royal Court’s Financial Committee,
Chairman of the Zakat, Tax and
Customs Authority Board, PIF Board of
Directors, Chairman of the PIF
Board’s Risk Committee, Chairman of
the
State
Properties
General
Authority, the Chairman of General
Organization for Social Insurance, and
the Chairman of the Public Authority for
Awqaf, in addition to his memberships in
the Governors Islamic Development
Bank, the International Monetary
Fund, the World Bank, the Arab Fund
for Economic and Social Development,
and the Arab Monetary Fund, among
others. H.E. Al-Jadaan previously
10
served as the Acting Minister 7of
Economy and Planning. His excellency
Board of
Directors
Governance
Review
H.E. AHMED BIN
AQEEL AL
KHATEEB
Board Member
Investment
Committee Member
Risk Committee
Member
H.E. Al-Khateeb currently serves as
the Minister of
Tourism, and he holds memberships
in the following Boards: The Council
of Ministers, PIF Board of Directors,
the Board’s Investment Committee,
the
Board’s
Risk
Committee,
Chairman
of
the
Tourism
Development Fund, the Saudi
Arabian Military Industries and the
Quality of Life Program Committee.
H.E. Al-Khateeb also serves as
Secretary General of the Diriyah
Gate Development Authority. His
excellency previously served as the
Minister of Health, Chairman of the
General Entertainment Authority,
and Advisor to the General
Secretariat
of the Council of
10
8
Ministers.
H.E. holds a Bachelor of
Business Administration from King
H.E. ENG.
KHALID BIN
ABDULAZIZ AL
Board
FALIHMember
H.E. Al-Falih currently serves as the
Minister of Investment, and he holds
memberships in the following Boards:
The Council of Ministers, the Public
Investment Fund, and the Economic
Cities and Special Zones Authority,
King Abdullah University of Science
and Technology. Previously,
H.E. Al-Falih served as the Minister
of Energy, Industry and Mineral
Resources, Minister of Health, CEO of
Saudi
Aramco,
among
other
positions. H.E. Al-Falih holds an
Honorary Doctorate from the Korea
Advanced Institute of Science and
Technology, an MBA from King
Fahd University of Petroleum and
Minerals, Saudi Arabia and a
Bachelor’s of Science Degree in
Mechanical Engineering
from Texas A&M University, USA.
H.E. YASIR BIN
OTHMAN AL
RUMAYYAN
Board Member
Investment Committee
Member Risk
Committee Member
Remuneration
Committee Member
H.E. Al-Rumayyan currently serves
as the Governor of
the Public Investment Fund, Chairman
of the Royal Court Decision Support
Center, Chairman of Saudi Aramco,
Chairman of Saudi Arabian Mining
Company
“Ma’aden”and
Sanabil
Investment Company among other
roles. Previously his excellency
served as a board member of Uber
Technologies, CEO and a Board
Member of Saudi Fransi Capital,
Director of Corporate Finance at the
Capital Market Authority, Head of
International Brokerage at Saudi
Hollandi Bank. His excellency holds a
Bachelor’s in Accounting from King
Faisal University, Saudi Arabia, and is
a graduate of the Harvard Business
Annual
Report 2022
H.E.
MOHAMED
BIN MAZYED
Board
Member
AL TWAIJRI
Chairman of Investment
Committee
H.E. currently serves as a Royal
Court
Advisor
and
holds
memberships in the following
Boards: PIF Board of Directors
Member and Chairman of the PIF
Board
Investment
Committee,
Member of the Council of
Economic
and
Development
Affairs, Saudi Aramco, and Royal
Commission for Makkah City and
Holy Sites, Deputy Chairman of
National
Development
Fund.
Previously H.E served as the Minister
of Economy and Planning, Vice
Chairman of HSBC, CEO of HSBC
MENA and Turkey, Director and
CEO of J.P. Morgan in KSA. H.E
holds a Master of Business
Administration from the King Saud
University and a Bachelor of
Aviation Science from the King10
9
Faisal Air Academy, Saudi Arabia.
Governance
Review
GOVERNA
NCE AT
BOARD
PIF Board of Directors Key Areas
LEVEL
of Responsibility
• Oversees and manages the
Fund’s affairs to ensure that
it fulfills its mandate.
• Sets the Fund’s investment
strategy, investment
policy statement, and risk
management policies.
• Approves the Fund’s financial
and administrative
regulations.
• Approves
the
Fund’s
organizational structure.
• Approves the Fund’s annual
budget, annual operating
plan, asset allocation and
annual report.
110
11
0
1
Annual
Report 2022
Governance at
Board Level
OVERSI
GHT
Under the Chairmanship and
guidance of HRH Crown Prince
Mohammed bin Salman bin
Abdulaziz Al Saud, the Board is
responsible for overseeing PIF’s
long-term strategy, investment
policy, and overall performance.
BOARD
EXECUTIVE
COMMITTEE
Monitors and aligns PIF’s
performance with its mandate
and provides management with
strategic direction and guidance.
Activities of the Executive
Committee have been suspended
as per BoD directive in its meeting
number
4/1440
dated
in
26/3/2019.
11
111
Governance
Review
Governance at
Board Level
Annual Report 2022
Report 2022
REMUNER
ATION
COMMITTE
Remuneration Committee has
E
oversight
of
the
overall
remuneration pool relating to
each
senior
management
member, the compensation
policy for external members of
PIF committees, and the
compensation and benefits
scheme
linked
to
the
performance management of
employees.
H.E. MOHAMMAD
BIN ABDUL
MALEK AL
Remuneration
SHAIKH 1
Members of the
Committee from
the Board of
Directors
Committee Member
H.E. YASIR BIN
OTHMAN AL
RUMAYYAN 2
Remuneration
Committee Member
His Royal Highness Prince
MOHAMMED BIN SALMAN BIN
ABDULAZIZ AL SAUD
Chairman of the
Remuneration Committee
11
2
113
1.Summary of profile on
page 107
2.Summary of profile on
page 109
11
3
Governance
Review
Members of the
Investment
Committee from
the Board of
BOARD
Directors
INVESTMENT
COMMITTEE
Reviews PIF investment activities and makes
decisions in light of the approved Delegation of
Authority. The Board Investment Committee
mainly covers the investments and governance of
portfolio companies, new direct and indirect
investments, the establishment of new companies,
asset transfers, and investment policy. The
members, except for His Excellency the Governor,
are all non-executive members with local and
international expertise in different fields.
Governance at Board Level
Report 2022
Annual
H.E.
MOHAMED BIN
MAZYED AL
Chairman
1 Investment
TWAIJRI of
Committee
H.E. AHMED BIN
AQEEL AL
KHATEEB2
Investment
Committee Member
H.E. YASIR BIN
OTHMAN AL
RUMAYYAN3
Investment
Committee Member
1.Summary of profile on
page 109
2.Summary of profile on
page 108
3.Summary of profile on
page 109
11
4
11
5
Governance Review
Governance at
Board Level
External
Investment
Committee
Members
BOARD AUDIT
AND
COMPLIANCE
Approves the internal and external audit plans, and
COMMITTEE
reviews audit reports and financial statements. It
H.E. AYMAN BIN
MOHAMED EL
SIARI
Investment
Committee Member
MR. ANDREW
LIVERIS
Investment
Committee Member
Annual
Report 2022
also exercises oversight of PIF’s compliance with all
applicable laws and regulations and adherence to
international standards of conducting business. All
members of this committee are non-executive
members, who offer their knowledge in the fields of
audit, compliance, and internal control to ensure PIF
operations are on the right track and match best
practices globally. Until 2018, the committee was
referred to as the “Audit, Risk and Compliance
Committee”.
Members of the Audit and
Compliance Committee
from the Board of
Directors
H.E. DR. MAJID
BIN ABDULLAH
AL-QASABI 1
Chairman of Audit and
Compliance Committee
DR.
IBRAHIM
BIN SAAD
Investment
AL-MOJEL
Committee Member
11
6
1.Summary of profile on
page 106
11
7
Governance
Review
Annual
Report 2022
Governance at
Board Level
External Board Audit
And Compliance
Committee Members
H.E. MR.
ABDULAZIZ
SALEH AL-FURAIH
MR. YOUSSEF BIN
MOHAMED ALMUBARAK
Audit and Compliance
Committee Member
Audit and Compliance
Committee Member
MR. TARIQ BIN
ABDULRAHMAN ALSADHAN
Audit and Compliance
Committee Member
11
8
11
9
Annual
Report 2022
Governance at
Board Level
Governance Review
BOARD RISK
COMMITTEE
To emphasize the importance of risk management,
a resolution was passed in 2018, stipulating that
the scope of risk management must ensure that
proper controls are in place and their
implementation is strictly monitored. This ruling led
to the establishment of the Risk Committee as a
standalone committee not linked with the Audit and
Compliance Committee. The Board Risk Committee
ensures that investments comply with risk
management policies. It also prepares a risk
appetite statement and formulates mitigation plans
to avoid any risks PIF might encounter through its
investment and non-investment activities.
Members of the Risk
Committee from the
Board of Directors
H.E. MOHAMMED
BIN ABDULLAH
AL- JADAAN 1
Chairman of Risk
Committee
H.E. AHMED BIN
AQEEL AL2
KHATEEB
Risk Committee
H.E. YASIR BIN
OTHMAN AL 3
RUMAYYAN
Risk
Committee
Member
External Risk
Committee Members
DR. KHALED
BIN DAWOOD
AL-FADAGH
Risk Committee
Member
DR. ROLAND
TOPPEN
Risk Committee
Member
Member
1 Summary of profile on
page 107
2 Summary of profile on
page 108
12
0
3 Summary of profile on
page 109
12
1
Governance
Review
MANAGING
PIF’S
INVESTMENT
S
Govern
Robust investment policies are in place to
ance
provide more detailed instructions about the
management of PIF investment portfolios
and to ensure that the best global investment
practices are followed by identifying the
objective of each investment portfolio,
providing details on the allowed asset
categories,
and
allocating
targets,
performance standards and risk tolerance.
The governance model in the Board of
Directors
falls
under
the
executive
management level with five committees that
review strategic and operational activities
and evaluate investment and non-investment
proposals before filing them to the board
and its committees to take the proper
12
resolutions.
2
Managing PIF’S
Investments
Manage
ment
Committ
ee
Portfolio
Compan
ies
Nominat
ion
Committ
Managem
ee
ent Risk
Committee
Manage
ment
Investme
nt
Committ
Manage
ee
ment
Liquidity
Committ
ee
Annual
Report 2022
Monitors the strategy, business
plan execution, and annual operation
budget
from
an
institutional
perspective.
The
Management
Committee makes the necessary
decisions within its framework of
authority and review non-investmentrelated proposals that will be issued
to
the Boardcandidates
of Directorstoand
its subProposes
represent
committee.
PIF
in its portfolio companies,
reviews
the
representatives’
performance, and ensures proper
governance practices are in place to
maintain integrity and control.
Monitors risks and PIF compliance
with its risk policies, proposes
mitigating actions to potential risks,
and updates the internal guiding
documents that match best practices.
This committee also identifies
business
plans to
ensure
Reviews continuity
all investment
proposals
business
resilience. to the Board and
before submission
its sub-committees, in addition to
utilizing the investment powers
granted
to
the
Executive
Management through delegation of
authority by the Board.
Reviews and recommends PIF
financing strategy and lending
activities to portfolio companies;
monitors the liquidity of PIF; develops
the capital structure and ensures it is
within the desired state, maintains
the pace of its activities as desired.
This committee also ensures that
12
funding plans are in place and within
3
aspired targets.
Annual
Report 2022
Executive
Management
Governance
Review
EXECUTIVE
MANAGEMENT
TURQI A. ALNOWAISER
Deputy Governor,
YAZEED A. ALHUMIED
Deputy Governor,
Head of International
Investments Division
Head of MENA
Investments
Division
Real Estate
Investments
Division
RANIA
NASHAR
Head
of
SAAD ALKROUD
Chief
of Staff and
KEVIN
HeadFOSTER
of Corporate
Compliance
and
Governance
Division
Secretary
General to the
Board
FETA
ZABELI
Head
of Risk
BRIAN
GILLESPIE
Head
of Legal
Division
Division
12
4
AIMAN M. ALMUDAIFER
Head of Local
Affairs Division
YASIR A.
ALSALMAN
Head of Finance
Division
JERRY
TODD
Head of
National
Development
Divison
BANDER A.
MOGREN
Head of Shared
Services Division
FAHAD
AL-SAIF
Head of Global
Capital
Finance
Division
MIKE
CHENG
Head
of
Internal
Audit
Divison
12
5
Annual
Report 2022
Organizational
Structure
Governance
Review
Organizational
Structure
BOARD OF
DIRECTORS
SECRETARY
GENERAL
TO
THE BOARD AND
BOARD
COMMITTEE
MENA
INVESTME
NTS
H.E. THE
GOVERNOR
NATIONA
L
DEVELOP
MENT
LEG
AL
AUDIT
AND
COMPLIA
NCE
COMMITT
EE
EXECU (1
COMMIT
)
TIVE
TEE
INVESTM
ENT
COMMIT
TEE
CORPOR
ATE
AFFAIR
S
CHIEF OF
STAFF
GLOBAL
CAPITAL
FINANCE
RISK
COMMIT
TEE
INTERNAL
AUDIT
SPECIAL
ADVISOR
FINAN
CE
REMUNERA
TION
COMMITTE
E
SHAR
ED
SERVI
CES
LOCAL
REAL
ESTATE
INVESTME
NTS
INTERNATI
ONAL
INVESTME
NTS
INVESTM
ENT
STRATEG
Y
AND
ECONOMIC
INSIGHTS
COMPLIA
NCE AND
GOVERNA
NCE
RIS
K
1
.
12
6
12
7
LOCAL REAL
INVESTM
ESTATE
ENTS
GOVERNANCE &
OVERSIGHT
ORGANIZATIONAL
STRUCTURE
CHIEF OF
STAFF
Provides support to His
Excellency the Governor
and the Fund’s different
departments
in
developing
strategies
and business plans,
managing
institutional
projects, establishing new
companies,
and
overseeing the affairs of
the Fund’s portfolio
companies,
stakeholders,
committees, and related
reporting
activities.
NATIO
DEVELOP
NAL
MENT
Cooperates
with
all
investment divisions to
implement development
plans and studies to
achieve
the
required
economic and social
value
to
the
local
economy by providing
guidance
regarding
structuring,
evaluating,
and
analyzing
investment
decisions,.as.wellas.raising
12
recommendations
to
8
decision-makers.
Annual
Report 2022
Governance &
Oversight
Governance
Review
INTERNAL
AUDIT
Provides
independent
assurance to the board
and
executive
management to ensure
the
effectiveness
of
operations, controls, and
risk management activities
related to domestic and
international
investments, information
technology, information
security, operational and
financial
support
services,
and
other
related ME
operations.
INVESTM
NA
ENTS
Manages all activities
related
to
local
investment
portfolios
as well as investments
in the MENA, including
investments in private
and listed companies
and
funds.
Also
manages
the
establishment of new
companies in the sectors
included in the Fund’s
program and enhances
the
operational
performance
of
the
FINA
NCE
Manages
treasury
investments and fixedincome assets, ensuring
that the targeted returns
are achieved as specified
in the Fund’s investment
policy.
Manages
the
performance evaluation of
investment
portfolios,
and supervises the work
of accounting, financial
control, taxes, financial
evaluation, consolidation
of financial statements,
and INTERNATI
accounting
consultancy.
INVESTM
ONAL
ENTS
Manages all activities
related to international
investment
portfolios,
which include listed stocks,
international real estate
and
infrastructure
investment
portfolios,
and direct investments,
including
investments
with influential ownership
in listed or private
companies.
Oversees all activities
related to real estate
investment portfolios and
local
infrastructure
projects, including the
establishment
and
launch
of
new
companies
and
monitoring
them
through
asset
management services,
providing support and
technical
recommendations,dev
LEG
eloping strategies, and
managing
ALprojects.
Manages all legal affairs
and activities, including
providing
recommendations,
advice,
and
legal
services
concerning
legislation,
deals
and
partnerships
for
all
investment and financial
activities in the Fund.
Additionally,
manages
disputes and claims,
cases, and investigations
at the Fund’s institutional
level.
RI
SK
Analyzes and covers
investment
and
operational
risks,
advising on credit risks,
providing
decision
support to investment
holders, and supervises
work
related
to
information security to
ensure the protection of
the Fund’s assets and
information systems.
CORPO
AFFA
RATE
IRS
GLOBAL
FINA
CAPITAL
NCE
Manages
media Prepares
a
relations
across
all comprehensive financing
platforms, following up strategy for the Fund to
on media coverage and meet and ensure longpreparing related reports, term investment and
managing
marketing liquidity needs, supporting
activities, representing the Fund’s subsidiaries in
the corporate brand designing
and
identity, managing and implementing a financing
leading
the
internal strategy and managing
corporate
investor and financial
communication, as well institutions relations.
as
promoting
and
COMPLIA
nurturing
the
Fund’s
SHARED
GOVERN
corporate
culture
NCE
&
SERVICES
internally,
and
enhancing
ANCE
the
Fund’s
position Manages all administrative
Manages
and mitigates
through
compliance risks insocial
the and operational activities
responsibility.
Fund,
handling risks of related
to
investment
financial
crime, operations, human capital
assessing
regulatory management, contracts and
compliance,
setting procurement, information
internal policies and technology, administrative
guidelines. In addition to affairs, and information
building a solid and preservation and archiving
efficient
governance center.
Also
provides
structure
that
will operational and logistical
empower
effective support
for
the
decision-making
by establishment
of
new
setting high standards companies, as well as
for PIFINVESTMENT
and its portfolio services to the Fund’s
AND
ECONOMIC
companies. Continuously
portfolio companies and
STRATEGY
working to monitor and new projects.
adopt INSIGHTS
global
developments
and
bestof longDetermines the strategy
practices.
term
portfolios, balances the
allocation of different assets of
all kinds, develops vision and
strategies,
and
identifies
opportunities between portfolios
for different sectors. Also,
follows up on and evaluates the
macroeconomic trends for the
development of the Fund’s
economic database and the
extent of its effects on the
Fund’s investment strategy
12
9
Annual Report 2022
STATEM
ENTS
130
13
1
Financ
ials
Financial
Statements
Annual
Report 2022
Consolidated
Statement of
Financial Position
ASSETS
Fixed assets
Investment securities
and Derivative financial
instruments
Investment in associates and
Financial
assets and
joint ventures
Other assets
Financing and
advances
Total Assets
Liabilities
Loans and borrowings
Customer deposits
Trade and others liabilities
Total liabilities
202
2
362,67
3
202
1
298,0
40
Chan
ge
64,6
33
Chang
e%
22
%
Investment securities and Derivative financial instruments:
1,266,
147,3
369
15
547,929
934,3
118,4
68
70
652,829
332,0
28,8
01
45
(104,900)
36
24
%
%
-16%
Financial Assets and Other Assets
592,244
535,362
56,882
11%
Loans and Borrowings:
2,916,5
30
2,539,069
377,461
15%
321,77
3
607,00
2
219,152
249,341
72,432
29%
603,381
3,621
1%
182,575
36,577
20%
1,035,297
112,630
1,147,927
11%
Total Equity
1,768,6
03
1,503,772
264,831
18%
Total Equity and Liabilities
2,916,5
30
2,539,069
377,461
15%
13
2
The increase is mainly driven by share transfer of 4% of Saudi
Arabian Oil Company (Saudi Aramco) to the Public Investment
Fund.
The decrease is mainly due to the early prepayment of Aramco
Promissory Notes.
The increase is mainly resulted from:
• Increase in balances with banks and financial institutions of Saudi
National Bank (SNB) including
Repos and Money market
deposits, additionally SNB has also issued non-convertible Euro
medium
term notes (MTN).
• PIF has raised additional debt amounting to SAR 75Bn which
includes Green Bonds issuance
amounting to SAR 11.25
Bn ($3Bn) and SAR 63.75 Bn ($17Bn) relates to 7 years longterm loan.
In contrast, a loan amounting to SAR 41.25Bn
($11Bn) was repaid.
• Saudi Refinancing Company has issued sukuks during 2022 with
Equity:
total amount of SAR 7Bn. due
The Government of Saudi Arabia (The owner) transferred 4% of
to the increase in purchase of Mortgage Loans.
Saudi Arabian Oil Company (Saudi Aramco) shares amounting to
SAR 296Bn to the Public Investment Fund.
13
3
Financ
ials
Consolidated
Statement of
Profit or Loss and
Other
Comprehensive
income
(Loss)/ Income from
investment activities
Revenue from nonTotal
investment activities
Revenue
Cost of
revenue
Other operating income/(expenses), net
Administrative and Selling expenses
2022
2021
Change Change %
(Loss)/ Income from investment activities:
)112,90
2(
49,715
-158%
-28%
(76,834)
)63,187
(
)34,988
)3,326(
(
963
8,635
278
3%
85,467
4,457
89,924
(4,197)
)100,260(
1,266
)98,994(
)1,455(
-117%
28%
-110%
35%
85,727
)100,449(
-117%
9,799
)53,622(
-547%
95,526
(154,071)
-161%
(41,550)
71,352
206,602
156,887
165,052
228,239
(117,208)
4,321
(82,220)
7,647
(75,871)
Share of profit of associates and joint
8,913
ventures
OPERATING (LOSS)/ PROFIT
(14,793)
Other Finance costs / Income
5,723
(Loss)/ Profit before zakat and income tax (9,070)
Zakat and income tax expense
(5,652)
(Loss) /Profit for the year
(14,722)
Other
Comprehensive
Income
Total other
comprehensive
profit/loss for
(43,823)
the year
TOTAL COMPREHENSIVE (LOSS )/
(58,545)
INCOME FOR THE YEAR
13
4
Annual
Report 2022
Financial
Statements
32%
43%
-43%
-1%
Mainly due to the unrealized losses
(change in fair value) of investments in
Softbank Vision Fund in addition to losses of
other investment due to market downturn
particularly in tech sector. However the
losses were partially offsetted by income
from dividends and realized gains from
Revenue
from Non-Investment Activities:
investments.
Increased by 32% mainly due to the
increase in revenues of some subsidiaries
including Saudi National Bank (SNB), Saudi
Arabian Mining Company (Ma’aden), Saudi
Telecommunication
Company
(STC),
Tahakom Investment Company, and Sela
Sports Company.
Cost of Revenue
The increase in cost of revenue is in line with
the increase in revenue from noncompared
to last
year,
to theinvestment
increase inactivities
expenses
of the Saudi
gigain addition projects.
13
5
13
6